BSR Insight | Investing in Africa: Chinese Companies and Sustainable Development
About the Author(s)
Terry Nelidov, Former Manager, Advisory Services
Publication Date
August 14, 2012
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At the Asia Society's "Chinese Investment in Africa" panel in Hong Kong, academics and journalists gathered to discuss the road ahead for Chinese companies looking to do business in Africa. I came away with two main reflections:
- Chinese investment in Africa is taking place on an unprecedented scale and is focused on extracting raw materials and natural resources. This is happening without concurrent, long-term investments in infrastructure and development needs that have been identified by the community.
- Concerned with "classic" economic growth, many African governments are failing to represent their people's development needs, and unless Chinese enterprises do focus on them, tensions may rise in local communities—as they already have in Zambia.
Western companies have been investing in Africa for more than a century with similar patterns, but they have had a head start on developing local engagement strategies. Chinese companies, which have started investing in African nations more recently, are only beginning to consider these approaches. You can learn more about BSR's stakeholder engagement work here.
About the Author(s)
Terry Nelidov, Former Manager, Advisory Services
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